Pipavav to raise $40m via debentures for acquisition

Private sector ship builder, Pipavav Shipyard is planning to raise USD 40 million via debentures to US-based Valiant Fund at Rs 70 per share. Confirming the news, its Chairman and Managing Director Nikhil Gandhi, said, "This USD 40 million will be used to part finance our potential acquisitions in Europe." The total cost of acquisition will be over USD 100 million. The company, Gandhi said, might raise an additional USD 30 million once the acquisition with the target company, which has presence in offshore space with several vessels deployed in global markets, is finalised. Commenting on the pending open offer for Pipavav, Gandhi said, the issue is subject to Sebi clearance. “It couldn’t take about six-weeks or so.”